The correct answer is B. Assets are traded.
Financial market is termed as market where people trade financial derivatives and securities. For example, low transaction cost and futures. Some of the securities are; precious metals, bonds, and stocks.
There are different types of markets, for example, insurance market, money market, commodity market, derivative market and money market.
The functions of financial market include; it permits funds transfer from one agent to another for the purposes of consumption, it also acts as lending and borrowing institution.
The option B is correct. Assets are traded generally occurs in the financial markets.
Further Explanation:
Financial market:
A financial market refers to a place where the investor exchanges the assets. The investor who has the assets sold in the financial market. The investor who wants to purchase the assets, they can purchase in the financial market. Assets are the type of securities that is traded in the financial market to gain the profit.
Justification for the correct and incorrect answer:
A.
Debt and loan are traded: This option is incorrect.
Debt and loan are not traded as they cannot be traded in the market. The company can raise money from the market in the form of debt. The loan is provided by the banks.
B.
Assets are traded: This option is correct.
Assets are traded in the financial market. When the price of the asset increases, the customer sell off the assets and when the price of the asset decreases, the customer purchases the asset.
C.
Commodities are traded: This option is incorrect.
Commodities are traded in the general market. There is no need for the financial market to trade commodities.
D.
Shares are traded: This option is correct.
Shares are the type of investment in which the investor purchases the shares for a particular company. It is not traded in the financial market.
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Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Financial market
Keywords: best describes, generally, financial markets, debt, and loans, assets, commodities, shares, exchange, investor, to sell, to purchase, traded, type of securities, gain the profit.
